SQM – often referred to as Soquimich - is one of the world’s biggest producers of potassium nitrate, iodine and lithium which it produces with raw materials sourced from its caliche ore and brine mines in the Atacama desert. Originally a state enterprise, SQM was privatized by Pinochet in 1988 at the bargain basement price of $120 million on the advice of the International Monetary Fund (IMF).

The man in charge of privatization in Chile was Ponce, who trained as a forestry engineer, but had the good fortune of marrying Veronica Pinochet, the daughter of the president. Pinochet appointed Ponce to the board of SQM before it was privatized.